Car insurance laws in Virginia recently changed to mandate that drivers show proof of insurance before they register a vehicle in the state. Drivers can no longer opt out of auto insurance in Virginia, ensuring that you can recover compensation if a negligent driver injures you.
If you suffered injuries in a motor accident, contact a Virginia car accident lawyer to learn more about your legal right to compensation for your injuries.
Virginia Drivers Can No Longer Opt Out of Car Insurance
Virginia was one of the last states in the country to require motorists to purchase auto insurance.
Before July 1, 2024, Virginia drivers who did not want to pay for car insurance could pay a $500 annual fee to the state as an uninsured driver. The driver assumed personal liability for any damages they caused in a car accident.
The other driver in the accident would hopefully have uninsured motorist coverage as part of their policy, but it was often insufficient to pay for all their damages. Thus, a driver could have incurred a catastrophic loss with only one car insurance coverage to potentially pay for their injuries.
The pitfalls of this law were great enough that the Virginia Legislature made a major change.
The Difficulties of Virginia Drivers Not Having Car Insurance
Another problem with opt-out insurance was that insured drivers ended up paying the price for the actions of those who opted out of insurance through higher premiums.
Auto insurance companies depend on a larger pool to spread their risk around and reduce premiums. If there is a smaller risk pool, the drivers who have paid for insurance end up with higher premiums because they bear the costs.
Higher Premiums Cause Drivers to Purchase Less Auto Insurance Coverage
When premiums go up, drivers may purchase a plan with less coverage to save money. Unfortunately, drivers with smaller policies can leave victims with uncompensated losses.
Rising premiums were enough of a problem in Virginia that lawmakers chose to act to eliminate opt-out insurance. Even now, however, drivers who purchase small policies take a risk because they could be personally liable for excess damages in a judgment.
In fact, they may even end up filing for bankruptcy to seek a discharge of debts incurred after an accident, leaving victims high and dry.
When other drivers lack car insurance coverage, you may need to rely on your underinsured motorist policy to pay for any extra damages. You may not have enough coverage to fully pay for your damages. Then, you will have to deal with two insurance companies in the fight to receive enough compensation for your injuries.
New Auto Insurance Requirements in Virginia
Given the rising insurance premiums in the state (which were already spiraling out of control due to inflation), the Virginia Legislature acted to end opt-out auto insurance in the state.
Now, like drivers in every other state, motorists in Virginia must purchase the following minimum amounts of car insurance coverage:
- $30,000 of bodily injury liability coverage per person
- $60,000 per accident
- $20,000 of property damage liability coverage
Virginia will drastically increase the required amounts of auto insurance coverage in 2025. Specifically, the minimum car insurance requirements will jump to 50/100/25. In other words, Virginia went from a state where car insurance was not mandatory just a year ago to one with among the highest requirements in the country.
Going forward, if you suffer an injury in a Virginia car accident caused by someone else, you will first look to the other driver’s car insurance coverage to pay for your injuries.
For the insurance company to accept liability, you must present evidence that the other driver was negligent. Negligence means that the driver has done something a court would consider unreasonable under the circumstances.
Once you prove negligence, you will discuss financial compensation with the other driver’s insurance company. If the other driver does not have enough coverage to fully pay for your injuries, you will turn to your underinsured motorist coverage to fill the balance.
How a Car Accident Lawyer Can Help with Your Case
When any insurance company is involved in your case, you need a car accident attorney to put you in the strongest possible legal position.
A car accident lawyer can:
- Investigate the car accident and obtain proof of liability
- Quantify your damages so you know how much to seek in compensation
- Ascertain the amount of insurance coverage and speak to the insurance company on your behalf
- File a claim or lawsuit on your behalf
- Negotiate compensation with the insurance company in a settlement agreement or take your case to a jury
Hire a car accident lawyer as soon as possible after the crash. It can take some time to file your lawsuit.
You do not have to pay anything out of pocket for a car accident attorney, and they only receive any money from you if you win your case by receiving a settlement or jury verdict.
Insurance Companies are Still Not On Your Side
As a car accident victim, you need to remember that auto insurance companies are doing everything they can to minimize payouts and deny claims – regardless of new insurance requirements. There are many tactics that insurance companies use to get victims like you to settle for less.
Some of the most common include:
- Not making a settlement offer until victims’ bills are piling up
- Requesting overbroad medical record authorizations
- Making unreasonably low initial offers
- Misrepresenting victims’ legal rights
- Making quick settlement offers before victims realize the full extent of their damages
Fortunately, you can fight back. You can retain an experienced Virginia car accident lawyer who can represent your rights and force the insurance company to treat you fairly. Contact an attorney near you today so you get the compensation you deserve.
